VEGOILS-Palm falls to near one-week low on higher supply concerns, weaker Dalian

Updates with closing prices, adds details

KUALA LUMPUR, May 11 (Reuters) - Malaysian palm oil futures ended lower for a second session on Thursday, hitting a one-week low on concerns over rising supply in the world's top producers and losses in rival Dalian oils.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange closed down 105 ringgit, or 2.83%, to 3,604 ringgit ($812.63) a tonne, its lowest since May 5.

Malaysia's end-April palm oil inventories slumped to their lowest in 11 months, after production and exports plunged more than anticipated, data from the country's palm oil board showed on Wednesday.

However, brokerage UOB Kay Hian said inventories in the world's second-largest producer will start increasing from May onwards despite weak production.

"This is mainly due to subdued palm oil exports owing to the comparatively lower prices offered by Indonesian peers and soft oils being traded at more attractive prices at destination markets, which will exert ongoing pressure on palm oil demand," the brokerage said.

Exports from Malaysia for May 1-10 rose 10.03% from the previous month, cargo surveyor Intertek Testing Services said on Wednesday. Another cargo surveyor, Amspec Agri, said exports rose 1.7%.

Traders and analysts said they are also anticipating production in larger grower Indonesia to see a big jump in May.

India on Thursday clarified that duty-free imports of soyoil and sunflower oil shipped before March 31 would be allowed until the end of June, after hundreds of thousands of cargoes were stuck at ports over confusion over import rules.

In related oils, Dalian's most-active soyoil contract DBYcv1 fell 3.2%, while its palm oil contract DCPcv1 was down 3.6%. Soyoil prices on the Chicago Board of Trade BOcv1 also dropped 0.7%.

($1 = 4.4350 ringgit)

(Reporting by Mei Mei Chu; Editing by Janane Venkatraman, Varun H K and Sonia Cheema)

((Meifong.chu@thomsonreuters.com))

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Vegetable oils                       OILS/ASIA1
Malaysian palm oil exports           SGSPALM1
CBOT soyoil futures                  0#BO:
CBOT soybean futures                 0#S:
Indian solvent                       SOLVENT01
Dalian Commodity Exchange            DC/MENU
Dalian soyoil futures                0#DBY:
Dalian refined palm oil futures      0#DCP:
Zhengzhou rapeseed oil               0#COI:
European edible oil prices/trades    OILS/E